{"id":303,"date":"2021-07-31T06:08:29","date_gmt":"2021-07-31T06:08:29","guid":{"rendered":"https:\/\/cashflowinventory.com\/blog\/?p=303"},"modified":"2022-04-14T21:57:50","modified_gmt":"2022-04-14T21:57:50","slug":"cash-flow-inventory-tutorial-production-planning","status":"publish","type":"post","link":"https:\/\/cashflowinventory.com\/blog\/cash-flow-inventory-tutorial-production-planning\/","title":{"rendered":"Cash Flow Inventory Tutorial \u2013 Production Planning"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Production planning is the planning of production and manufacturing according to demands or forecast. Right production planing keeps the right flows between supply and demands and prevent empty stocks as well as <a href=\"https:\/\/www.merriam-webster.com\/dictionary\/overstock\" target=\"_blank\" rel=\"noreferrer noopener\">overstocks<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Automated Production Planning in Cash Flow Inventory<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Production plans are generated according to your forecasting. Initially if you don&#8217;t enter (When added product list)&nbsp;<strong>forecasting values<\/strong>&nbsp;or you have&nbsp;<strong>enough stocks<\/strong>&nbsp;(No need production at this moment ) you don&#8217;t see any production plans. But, after using some months our software automatically calculated forecasting values and generates production plans<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"527\" src=\"https:\/\/cashflowinventory.com\/blog\/wp-content\/uploads\/2021\/07\/production-plans-1024x527.png\" alt=\"\" class=\"wp-image-304\" srcset=\"https:\/\/cashflowinventory.com\/blog\/wp-content\/uploads\/2021\/07\/production-plans-1024x527.png 1024w, https:\/\/cashflowinventory.com\/blog\/wp-content\/uploads\/2021\/07\/production-plans-300x154.png 300w, https:\/\/cashflowinventory.com\/blog\/wp-content\/uploads\/2021\/07\/production-plans-768x395.png 768w, https:\/\/cashflowinventory.com\/blog\/wp-content\/uploads\/2021\/07\/production-plans-2x1.png 2w, https:\/\/cashflowinventory.com\/blog\/wp-content\/uploads\/2021\/07\/production-plans.png 1366w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Cash Flow Inventory generates production plans automatically according to your <a href=\"https:\/\/en.wikipedia.org\/wiki\/Demand_forecasting#:~:text=Demand%20forecasting%20is%20a%20field,categories%2C%20qualitative%20and%20quantitative%20methods.\" target=\"_blank\" rel=\"noreferrer noopener\">demand forecasting<\/a>. Demand forecasting is automatically calculated according to <strong> Safety Stock<\/strong> ,  <strong>Reorder Quantity<\/strong>, <strong>Max Lead Days<\/strong> and <strong>Avg Lead Days<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How Cash Flow Inventory automatically generates your production planning :<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Safety Stock<\/strong> = ( <strong>Maximum daily usage<\/strong> X <strong>Maximum lead time<\/strong> ) &#8211; ( <strong><strong>Average daily usage<\/strong><\/strong> X <strong><strong>Average lead time<\/strong><\/strong> )<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><strong>Reorder Quantity<\/strong><\/strong> (<strong>Reorder Point<\/strong>) = <strong>Safety Stock<\/strong> + ( <strong><strong>Lead time in days<\/strong><\/strong> X <strong><strong>Average daily usage<\/strong><\/strong>)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>If( Current Stock &lt;= Reorder Quantity<\/strong>) {<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Added the products into production plans<\/strong> (<strong>Quantity Calculated = Safety Stock<\/strong> &#8211; <strong>Current Stock<\/strong>)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>}else{<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Not need to production plans(this product at this time)<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>}<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Production planning is the planning of production and manufacturing according to demands or forecast. Right production planing keeps the right flows between supply and demands&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_cfi_subtitle":"","_cfi_read_time":"","_cfi_featured_label":"","_cfi_toc_enabled":false,"_cfi_cta_text":"","_cfi_cta_url":"","footnotes":""},"categories":[4,10],"tags":[18,14,15,17],"class_list":["post-303","post","type-post","status-publish","format-standard","hentry","category-documentation","category-production","tag-demand-forecasting","tag-inventory-control","tag-inventory-optimization","tag-inventory-software"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/posts\/303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/comments?post=303"}],"version-history":[{"count":8,"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/posts\/303\/revisions"}],"predecessor-version":[{"id":968,"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/posts\/303\/revisions\/968"}],"wp:attachment":[{"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/media?parent=303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/categories?post=303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cashflowinventory.com\/blog\/wp-json\/wp\/v2\/tags?post=303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}